Gilead raises full-year outlook, cites strong HIV drug sales
Quarterly earnings flat, revenue up 2% to $7.1 billion
HIV sales rise 7% to $5.1 billion
Adds share price paragraph 2, analyst comment paragraph 8
By Deena Beasley
Aug 7 (Reuters) - Gilead Sciences GILD.O on Thursday reported flat second-quarter earnings on slightly higher revenue and raised its full-year financial outlook, citing better-than-expected sales of HIV drugs.
Shares of the California-based biotech company, which closed at $100.28 in regular Nasdaq trading, were up nearly 3% at $113.28 after hours.
Gilead's adjusted earnings per share were flat from a year earlier at $2.01, and just ahead of the average of analysts' estimates of $1.97, as compiled by LSEG. Revenue rose 2% from a year earlier to $7.1 billion, which was in line with analysts' expectations.
The company did not disclose sales of Yeztugo, a twice-yearly HIV prevention drug approved by U.S. regulators in June.
CEO Daniel O'Day told Reuters the company is very happy with the launch so far.
"The first scrip was written within hours ... the first dose was delivered within days," he said, adding Gilead is on track to achieve its stated goal of 75% U.S. insurer coverage of the twice-yearly injection within six months and 90% coverage within a year.
Total HIV product sales for the quarter rose 7% year-over-year to $5.1 billion.
The sales trend supports Gilead's appeal to investors as they await details of "the hotly anticipated launch of recently-approved Yeztugo," BMO Capital Markets analyst Evan Seigerman said in a research note.
Gilead said its second-quarter cell therapy sales fell 7% to $485 million due to increased competition, while sales of cancer drug Trodelvy rose 14% to $364 million.
Sales of Gilead's portfolio of liver disease treatments fell 4% to $795 million, driven mainly by lower sales of hepatitis C drugs.
For the full year, Gilead said it now expects adjusted earnings per share of $7.95 to $8.25, up from its previous estimate of $7.70 to $8.10. The company also bumped up its expectations for 2025 product sales to between $28.3 billion and $28.7 billion from a previous range of $28.2 billion to $28.6 billion.
Gilead Chief Financial Officer Andrew Dickinson attributed the new outlook to strong HIV sales and continued expense discipline.
Analysts have forecast full year earnings of $8.01 per share on revenue of $28.7 billion.
(Reporting By Deena Beasley; Editing by Bill Berkrot and Chris Reese)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.thomsonreuters.com@reuters.net))
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